Today on MoneyLife

One of the sectors of the job market thought to be recession-proof is education, along with health care and, of course, government.

Chuck tells listeners at the top of today's program that jobs in those industries will continue to grow, but salaries can be small, especially for teachers. So today's guest is a man who’s learned to thrive on a teacher’s pay.

Chuck discusses an article in Crown's Help, Hope and Insight section that tells you how to prosper in a declining economy:

• Pay your bills faithfully (falling behind costs you more)
• Prioritize your debts (helps you pay them off faster)
• Negotiate with your creditors (they want to work with people)
• Accelerate your debt payments (pay as much as you can)
• Downsize (improve your cash flow)
• Look for ways to make extra income (capitalize on what you have)
• Reduce expenses (cut cable)

By learning to live a frugal, contented lifestyle, you can prosper in any economy. A great way to start is with a Crown Money Map.

After the break, Chuck welcomes Danny Kofke to the program. Danny is the author of How to Survive (and Perhaps Thrive) on a Teacher's Salary.

Danny says he was inspired to write the book when he learned that 50% of new teachers leave the profession within five years because of poor working conditions and low salaries.

He wrote the book for teachers, but it's helpful to people in many lower paying professions.

Danny says he wants to help people who love what they do realize there are things more important than money and teach them how to live on a small salary.

He says long-term planning is the key to living on one salary. Danny and his wife Tracy set a goal when they got married for her being able to stay home with the children they planned to have one day. Both were teachers.

Danny says all their financial decisions were made according to that plan. Danny saw this kind of financial goal setting lived out in his home growing up. He says it's very important for spouses to have the same vision for their family and be on the same page about getting there.

He advises couples to make time to discuss your finances and shares a story about how saving for his first car made him value it.

You should strive to live as debt-free a life as possible, while planning and saving for the future. If you’re prepared when tough economic times come, you will be much better prepared to survive.

Danny says he endorses the investing practice of dollar-cost averaging. He had the chance to teach in Poland with his wife shortly after being married. They saved $20,000 and saw Europe in two years. Their strategy was to "pay themselves first," by automatically putting money into savings every time they were paid. Important links:

• Proverbs 22:7
• Proverbs 21:20
• Proverbs 13:11
• The Wealthy Barber

Danny compares budgeting to dieting. You have to break down your big goals into small steps.

Use the snowball strategy to pay off debts; as you pay off one debt, apply that extra money to the next debt, and so on.

Pay yourself first using automatic deduction savings accounts.

Danny explains how he and Tracy bought a house. They got a cheap two bedroom house first, and later moved on to an affordable 3-bedroom house. They refinanced to a 20-year mortgage, with a goal to pay it off in 10 years.

They had one car for three years; Danny rode a bike to work. Danny advises you to avoid trying to "keep up" with other people. It causes you to make financial decisions that aren’t best for your family.

He shares a letter he received from someone who read his book and was encouraged that she could pursue her calling to teach and be financially secure. Danny doesn’t want finances to hold people back from pursuing God’s calling.

Danny says we need teach children God’s financial principles. He says his book will teach you how to:

• retire with a sizable nest egg
• teach in a foreign country
• own all your possessions
• save for retirement
• establish a weekly budget
• live a financially secure life on a teacher’s salary

In the final segment, Chuck gives some closing thoughts. He says Danny has a passion to teach people how to get their finances in order. Chuck says he's been inspired by the young people who’ve been on MoneyLife. He's touched by someone like Danny who is pursuing his calling and not letting money stop him.

God’s plan is for us to make money, manage it wisely, and fulfill God’s purposes for our life. We should try to teach God’s financial principles to our children. A key lesson is self control; another is contentment.

Chuck says it's also important to teach delayed gratification. All children need to learn those lessons. Chuck hopes parents will be inspired by Danny’s story to teach their children.

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Other Resources:

• ABCs of Money Package
• Career Direct
• God's Principles for Operating a Business
• Business By the Book
• Crown Mvelopes